Sales of new homes in the United States in June decreased by 2.5% compared to the previous month and amounted to 697 thousand in terms of annualized rate, the Ministry of Commerce reported.
According to the revised data, 715 thousand homes were sold in May this year, not 763 thousand, as previously reported.
At the same time, analysts on average expected a 5% decline in sales last month from the previously announced May level – to 725 thousand, according to Trading Economics.
Sales of new homes in June increased by 23.8% compared to the same month a year earlier.
The median price of a new home in the United States last month was $415.4 thousand, compared to $417.3 thousand in May and $432.7 thousand in June 2022.
The number of new buildings for sale at the end of June amounted to 432 thousand compared to 429 thousand a month earlier. At the current rate of sales, it would take 7.4 months to sell all new buildings in the United States, compared to 7.2 months in May. Experts traditionally believe that a six-month supply indicates a balanced market.
New real estate accounts for about 10% of the US housing market, but sales of new homes are registered immediately after the signing of the contract, which makes them a more relevant indicator of the market.
Food wheat in most regions of Ukraine is gradually becoming more expensive, for the week its price for 2 and 3 class amounted to 5500-6500 UAH/ton and 5400-6300 UAH/ton, which is by 100-400 UAH higher than last week’s figures, reports analytical agency “APK-Inform”.
“As of July 26, processors predominantly fix demand prices for wheat of 2nd and 3rd class within 5500-6500 UAH/tonne and 5400-6300 UAH/tonne SRT respectively, which is 100-400 UAH/t higher than the end of last week,” analysts noted.
According to their information, prices are supported by insufficient supply of grain of new harvest due to restrained sales by agrarians and slowdown of harvesting campaign in some regions of the country due to rains.
In addition, market participants often report that wheat of the new crop is closer to feed condition in terms of quality. Locally in the central region of the country there is an increased share of grain infected with sooty mold, which also affects the gradual rise in prices, stated APK-Inform.
Insurance company “Guardian” (Kyiv) has collected UAH 673,8 mln of gross insurance premiums in January-June 2023, that is by 90,4% more than in the same period a year earlier, reported the rating agency “Expert Rating”, which updated the insurer’s financial strength rating at the level of “uaAA” on the national scale following the results of the mentioned period.
It is noted that net premiums of the company for six months have increased by 84,7% – up to UAH 603,3 mln. Of them “Green Card” accounts for 63,19%, compulsory motor liability insurance – 22,9%, VHI – 4,99%.
The level of indemnities of IC “Guardian” following the results of the first half of 2023 compared to the first half of 2022 has grown by 10,27 p.p. and has amounted to 26,74%.
According to RA data, shareholders’ equity of the company as of June 30, 2023 has grown by 25,91% – up to UAH 248,71 mln, gross liabilities – by 88,88% – up to UAH 672,32 mln. The high growth rates of gross liabilities have led to decrease in the ratio between shareholders’ equity and liabilities of IC “Guardian” by 18,50 p.p.. Thus, as of the beginning of H2 2023 this indicator has amounted to 36,99% that indicates an acceptable level of shareholders’ equity coverage of the insurer’s liabilities.
The volume of cash and cash equivalents on the company’s accounts throughout the reporting period has grown by 29,85% – to UAH 188,098 mln, and the level of cash coverage of liabilities has decreased by 12,71 p.p., to 27,98%. – to 27,98%.
RA also informs that the financial results of the insurer have decreased in the reviewed period. In particular, following the results of the first half of 2023 the company has received an operating loss in the amount of UAH 5,88 mln, and its net profit has amounted to UAH 3,68 mln, that is by 92,44% less than the net profit for the first half of 2022.
At the same time RA notes that as of June 30, 2023 the insurer has formed a portfolio of current financial investments in the amount of UAH 171,62 mln, which consisted of OVDP and OZDP. Presence in the portfolio of investments in government bonds has positively influenced its provision with liquid assets, which in aggregate covered 53,5% of insurer liabilities.
The Agency notes that according to the statements provided by the insurer, IC “Guardian” has complied with the criteria and norms of solvency and capital adequacy, liquidity, profitability, quality of assets and riskiness of insurer operations established by the legislation.
IC “Guardian” is a member of the Presidium of the League of Insurance Organizations of Ukraine. Since January 2020 it has received the status of a full member of the ITSBU, has the right to sell “Green Card” policies.
An elevator with a total capacity of 24,000 tons of simultaneous storage is under construction in Cherkassy region, the press service of the contracting company Lubnymash LLC reported.
“Silos with a total capacity of 5,500 tons each and a diameter of 22 meters, having roof panels with GreenCoat® polymer coating from SSAB (RUUKKI), providing protection against corrosion for 50 years, are almost completely installed,” the contractor wrote on Facebook.
According to his information, the installation of one of the operational storage silos with a diameter of 5.5 meters and a capacity of 300 tons has already been completed. The second one is in the queue.
In addition, the installation of shaft type grain dryer U13-SSH50M2T with a capacity of 50 tons per hour (with removal of moisture from wheat from 20% to 14%), with full external insulation of the shaft on the alternative heat generator GRECO group has been completed.
Work has begun on transport equipment with a capacity of 100 tons per hour, in particular, 13 galvanized chain conveyors with a total length of 180 meters and 5 galvanized bucket-type belt elevators with a total height of 97 meters are being installed.
According to the company’s website, PE Lubnymash is a Ukrainian manufacturer and supplier of equipment for transportation, storage, processing of grain, grain products and other materials. The company sells its products under the Lubnymash and Lubnymash brands.
The company’s plant in the Poltava region has its own foundry, forging and painting facilities, two assembly shops, a mechanical shop, tool, welding and assembly and blanking areas, warehouses of materials and finished products.
According to the Unified State Register of Legal Entities and Individual Entrepreneurs, the ultimate beneficiary of the company PE Lubnymash is Maria Kudryk.
Plants of nitrogen holding Ostchem, which unites enterprises of nitrogen business of Group DF, produced 959.7 thousand tons of mineral fertilizers in the first half of 2023, which is 60.9% more than in the same period last year, when 596.3 thousand tons were produced.
According to the press release of Group DF on Wednesday, Rivneazot produced 201.2 thousand tons, Cherkassy Azot 758.6 thousand tons, including in May it reached the maximum since the beginning of the war – 138.6 thousand tons.
It is specified that the structure of production in the first half of the year corresponded to the structure of demand for nitrogen fertilizers, taking into account the prices of competitors and the margins of individual products. The key products were: ammonium nitrate – 398.7 thousand tons (313.3 thousand tons in 6M 2022); urea-ammonia mixture (UAN) – 277.7 thousand tons (116.8 thousand tons); urea – 205.9 thousand tons (76.4 thousand tons). At the same time, production of limestone-ammonium nitrate (UAN) dropped almost fourfold to 17.2 thousand tons.
“Ostchem’s enterprises have adapted to work under war conditions. Under the conditions of war risks, logistical problems, blackouts and unscheduled shutdowns, the plants managed to pass peak load periods and ensure timely shipment of fertilizers to agrarians clearly in accordance with the concluded agreements,” the report quotes Ostchem’s nitrogen business head Sergiy Pavliuchuk as saying.
According to him, at the moment the main task is to prepare production facilities for the fall season, and after the completion of repairs key workshops will be launched, and the load of plants in August will increase.
It is noted that the main factors that contributed to a successful spring season and the implementation of the production plan are increased demand from farmers and large agricultural holdings and increased sales due to soft loans, acceptable gas prices and lower fertilizer selling prices, as well as the spring sowing season delayed due to weather conditions.
“Our companies are ready to produce as much fertilizer as the market can buy. Illegal imports of repackaged Russian fertilizers are holding back the development of the domestic chemical industry,” said Oleg Arestarhov, Head of Corporate Communications at Group DF.
According to him, Russian fertilizers are imported to the customs territory of Ukraine from five countries of the former Soviet Union. In particular, Arestarhov specified, since the beginning of this year, 382.8 thousand tons of urea were imported into Ukraine, including 269.5 thousand tons from Turkmenistan, Uzbekistan and Azerbaijan, while domestic production amounted to 205.9 thousand tons.
“With such a volume of imports, it will be much more difficult for urea producers such as Dniprazot and OPZ, which are now standing, to start up,” said the head of Group DF’s corporate communications department.
The release also notes that Ostchem will continue to increase production volumes in new sectors of chemistry. In particular, the company counts on AdBlue – a liquid reagent for diesel cars, the production volume of which amounted to 4.2 thousand tons in the first half of the year.
In addition, production of carbon dioxide in the first half of 2023 amounted to 10.1 thousand tons, while during this period Cherkassy Azot has been increasing its output on a monthly basis, and Ostchem has started to develop its logistics infrastructure to ensure stable supplies of industrial gases both in Ukraine and Europe.
Group DF consolidates Dmytro Firtash’s assets in the gas distribution, chemical, titanium and port industries, as well as in agriculture and media.
Ostchem is the nitrogen holding company of Group DF, which unites the largest mineral fertilizer producers in Ukraine. It includes Rivneazot, Cherkasy Azot, as well as Severodonetsk Azot and Stirol, which are out of operation and located in the occupied territories.
Oil prices are falling on Wednesday after climbing the previous day to highs since mid-April.
The market’s decline on Wednesday is supported by data from the American Petroleum Institute (API), which showed an increase in U.S. inventories last week. Reserves rose by 1.319 million barrels after declining by 797,000 barrels a week earlier, API said.
The cost of September Brent crude futures on the London-based ICE Futures exchange at 8:05 a.m. Wednesday stands at $83.19 per barrel, down $0.45 (0.54%) from the previous session’s closing price. On Tuesday, these contracts rose $0.9 (1.1%) to $83.64 per barrel, the highest since April 18.
The price of WTI crude oil futures for September at the electronic trading of the New York Mercantile Exchange (NYMEX) fell by $0.46 (0.58%) to $79.17 per barrel. At the end of previous trading, the cost of these contracts rose by $0.89 (1.1%), to $79.63 per barrel, which is also the highest value since April 18.
Official data on energy reserves in the U.S. for the week ending July 21, will be released by the Department of Energy at 17:30 Q. Experts surveyed by S & P Global Commodity Insights, on average, predict a decline in oil reserves by 4.4 million barrels, gasoline – by 2 million barrels, distillates – by 2.3 million barrels.
On the eve it became known that the Chinese authorities intend to stimulate consumption, including the purchase of cars and electronics, as well as demand for services, including sports, tourism and recreation.
“The situation in China is very important for the global growth in oil demand this year, and traders had concerns about the weaker-than-expected recovery of the country’s economy, – said in a review of ING, quoted by Market Watch. – Signals of new stimulus help to reduce these concerns”.
